Beautiful Virgin Islands

Tuesday, Jan 13, 2026

How to Combat Money Laundering in Europe

How to Combat Money Laundering in Europe

Good luck finding a major bank in Europe that hasn’t breached money laundering regulations.

In Denmark, the two largest banks, Danske Bank and Nordea, are both currently subject to criminal investigations. BNP Paribas received the highest-ever fine in 2014, when it settled with U.S. authorities and had to pay $9 billion for sanctions violations. Many others — from HSBC and Standard Chartered in the U.K. to Deutsche Bank and UBS and Credit Suisse — have had to answer for offenses.

These cases show that living up to money laundering regulations is difficult, but not doing so is one of the biggest risks to a bank’s reputation. Banks and authorities share the same goal — to stop the bad guys — but both are struggling to find a way forward. While the European Union has proposed establishing a dedicated authority on the crime, company expenses to combat laundering are ballooning.

Research we conducted at the Danish Financial Supervisory Authority suggests a less expensive solution: Improve the technology for monitoring and reporting suspicious bank activity. Doing so could significantly cut down on money laundering, though it would also raise questions about privacy that would need to be addressed.

Banks are generally required to do three things to combat laundering: Know their customers and their expected patterns of transactions; monitor transactions and examine those that seem atypical; and report suspect behavior to the government.

These steps may sound simple, but the quantity and complexity of transactions make them anything but. In a small country like Denmark, the central payments systems process the equivalent of 80 billion euros ($97 billion) a day. Such monitoring can also be a hassle for customers, who have little patience when trying to execute simple transactions.

This is where investment in tech can be useful, especially if it improves cooperation between regulators and banks. I see six ways for authorities to help banks better identify and investigate high-risk activity while sparing most ordinary customers inconvenience.

Create (or enhance) national electronic IDs to verify customer identity. This data could ease the onboarding of most customers, as banks would no longer need copies of passports and other documents to set up accounts. Reducing costs and hassle for the many would free up resources for monitoring transactions of higher-risk customers.

Build digital data registers to verify business identity. Registers should be able to provide high-quality information (e.g. certified by lawyers) that banks can use in onboarding uncomplicated businesses. This would make it easier for companies too, since they can then maintain most of their data in one place. Again, this would free up bank resources to focus on higher-risk accounts.

Encourage banks to build shared Know Your Customers utilities. The banking sector would greatly benefit from a centralized database of customer information that can also be linked to public registers. There is no economic sense in banks gathering the same information separately, which is the current practice. Establishing such utilities may require supervisory guidance, however.

Allow banks to share data on risk flags. Money launderers often use multiple banks, making it difficult for any one company to identify problematic transactions. Being able to share data will give everyone a fuller picture of a customer’s banking activity. That would prevent those who get barred from one bank for suspicious activity from simply moving to another lender.

Make it easier to screen for politically exposed people. Governments generally have information on individuals — and close relations — who’ve been entrusted with a prominent public function and are therefore at greater risk of corruption. Right now most authorities don’t share this data with banks, making it hard to identify potentially risky accounts. (For example, it’d be easy for a bank to identify me as a politically exposed person, but given my common name, it’d be harder to identify my children living at another address.) Making this information available for bank queries would vastly improve their screening process.

Give banks access to other select data. Public authorities hold all kinds of information that could be useful for lenders trying to prevent laundering. For instance, governments have a better view of businesses that have the same owners or are connected in other ways. Sharing this data would give banks a better perspective on a particular business’s activities. Another option is for police to share what they know about how criminals behave to help banks identify dubious transactions.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
×